Rich and Poor: A meaningful interview with financial expert Robert Kiyosaki, the main principles and rules of money

In his childhood, Robert was friends with Mike and other boys who were not well-liked by others, who considered them poor. Robert sought advice from his father on how to become wealthy, to which his father replied, “You just need to learn how to earn more.” Even then, Robert understood that such advice wasn’t going to make him rich. His father, whom he calls his “poor dad,” was a teacher and earned well but always seemed to face financial difficulties. He redirected the boys to Mike’s father, who would become Robert’s “rich dad.” Interestingly, at that time, Mike’s father was not wealthy; he hadn’t even finished eighth grade. However, he managed several successful businesses. The boys went to Mike’s father for advice.

“Are you ready to learn how to make money?” the boys eagerly nodded. Then he made them an offer: “I will help you, but understand that this won’t be like regular school. You will work for me.” According to him, money-making couldn’t be learned from a desk; it was far more beneficial to start practicing right away.

Robert wanted to ask something, but Mike’s father stopped him, “No questions. You need to be determined. Only then will you learn how to make money. Opportunities come and go; you need to act quickly.” The boys glanced at each other and agreed.

“Okay, you will work every Saturday for three hours, and you will be paid 10 cents per hour.”

Although Robert already had plans for Saturdays, he decided not to miss this opportunity. So, Robert and Mike started working for Mrs. Martin, an employee of the rich dad, who managed a small grocery store. The store sold essentials like bread, milk, butter, canned goods, and cigarettes. The problem was that there was no air conditioning in the store. To keep the products fresh, the doors and windows were always open, and since the store was right by the road, dust flew in and settled on the shelves. The boys’ job was to wipe the dust off the products—an unexciting task. They worked diligently for three hours every Saturday, earning 30 cents in total. This was not much, as a comic book cost 10 cents at the time, but the boys persevered because they had a goal: to learn the secret of making money.

After three weeks, Robert was fed up with working for pennies. He felt like a servant to Mike’s father. They hadn’t seen him since their first meeting. Robert said, “Not only do I study all week, but why should I spend my weekend on this pointless job? I’m done.” Mike smiled, and his father expected this to happen. He told them to meet him when they were ready to quit. “Are you kidding?” Robert fumed. Mike explained that his father taught in his own way, and if they wanted to become wealthy, they shouldn’t argue with him. The boys agreed to meet with the rich dad the following Saturday.

Even Robert’s father was upset, saying it was unfair and that he deserved a raise to at least 25 cents per hour. “If not, quit.” On the day of the meeting, the boys arrived on time, but before Mike’s father showed up, they waited for 45 minutes. Tired of waiting, Robert declared, “You didn’t keep your part of the deal. I haven’t learned anything, let alone become rich. You’ve deceived us.”

The rich dad responded, “What does learning mean to you? To obediently write down information in a notebook?” Robert nodded. “Life is the best and simultaneously the harshest teacher. It won’t talk to you. It can guide you and suggest, but it will never do the work for you. Life is full of obstacles, and instead of fighting them, look for opportunities for growth and development in every situation. I have over 150 employees, but none of them ask how to make money. They only care about their salary; they don’t understand the essence of their work. You wanted to learn how to create money, so I gave you real working conditions. Do you understand? I paid you peanuts. Anger and frustration are the jolts of life that teach you something new. Tell me, Robert, what did you feel when working for 10 cents?”

“It felt like you were cheating us, teaching us nothing, and paying us poorly. That’s why I came to quit.”

The rich dad smiled. “Most people would have acted exactly like you, seeking a place that pays more. However, that doesn’t solve the money problem. It’s not about a salary increase but about making money work for you.” Robert reconsidered and thought that perhaps Mike’s father could teach them something useful.

“So, are the boys ready to continue learning?” asked Mike’s father. “Ready? Good. Continue working at the store, but now I won’t pay you.”

“Wait, I came for a raise and now have to work for free?” Robert thought. “Well, if you want to earn more, you have to use your brains. Think about what you can do over the next three weeks.”

Robert and Mike worked for free. One day, Mike’s father invited them for ice cream. “Well, have you figured out how to make money?” he asked. “No.”

“Think, guys. Look at Mrs. Martin and the people around. Do you think they live interesting lives? They work hard, earn little, and don’t quit because they believe in false security. They toil all year to afford a few weeks of vacation and work their lives away to retire. Do you want such a life? If you agree, you can get a 25-cent raise right now.”

The boys’ hearts raced at the tempting offer, but they remained silent. They looked at the rich dad with eager eyes. This was a test. Mike’s father understood the internal struggle they were going through. Everyone has a weak, greedy part of their soul; it only takes a tempting price to bring it out, while the other, morally fortified part cannot be bought.

The father made his final offer: 5 dollars an hour. Suddenly, the boys’ faces changed, and their greedy eyes filled with calm. The temptation disappeared. The weak, greedy part of the soul fell silent, and the part that couldn’t be bought spoke.

“Good job not falling for the bait,” said the rich dad. “I’m proud of you. Most people jump at the bait, driven by greed and fear, working hard but never having enough money. Greed makes people buy more things, and as income rises, so do expenses. It’s a rat race. So, how do you get rich?” asked Mike.

“There is another way,” replied the father. “You will learn about it if you continue working for free. You need to always be honest with yourself. For example, my employees are so driven by the fear of poverty that they act first and think later. They are driven by emotions and can’t resist fear. They dream of making more money, believing that money will save them from fear, but it doesn’t work that way. When a person is enslaved by greed, they are trapped. Wealth won’t save you from it.”

“Why?” asked the boys.

“Because desire is insatiable. People always want something better, more beautiful, and more effective. They think money will make them happier, but that happiness is short-lived. Even rich people are driven by fear, believing that wealth will ensure security. But fear only grows, as there is another fear—losing money. This paralyzes and confuses. When you don’t have money, it seems the best solution is to find a job, but that’s just a temporary fix. The important thing is to learn to think independently, not out of fear and greed.”

“I’m glad you agreed to work for free. It’s a good sign. You managed to overcome greed and avoided the trap of money, which wasn’t easy. You thought rationally. Continue working. The sooner you forget about needing a salary, the easier it will be in adult life. Over time, your brain will start generating ideas on how to earn, and they will be much more profitable than regular jobs. You will begin to see the world differently. This ability will stay with you for life.”

Robert and Mike followed the rich dad’s advice and soon started their first startup: a comic book library. Kids paid to enter and could read as much as they wanted. Mike’s younger sister became the librarian, earning 1 dollar a week and getting free access to the comics. Although the library had to close after three months due to a fight, the boys gained valuable business experience. The money worked for them even when they weren’t physically present. They learned their first lesson: the rich work for money, not the other way around.

Robert and Mike wanted to learn more, and the rich dad was ready to teach them.

Lesson Two: Why Learn Financial Literacy

When asked how to get rich, Robert Kiyosaki responds similarly to how his rich dad once answered him: you need to be financially literate. Accounting may be boring but is crucial for financial success. To convey this to the boys, Mike’s father used simple images and concepts.

First, the rich dad explained the difference between assets and liabilities. “If you want to get rich, focus on acquiring assets. That’s the secret. It’s simple.” When Mike’s father explained the concept, the boys thought he was joking. “Why don’t adults understand this?” asked Mike. “It’s so simple. They could have been rich long ago.”

The problem is that people intentionally complicate simple information. Financial consultants and bankers, who should know their field, make it complex. Moreover, they push liabilities as assets. Remember this rule: assets put money in your pocket, while liabilities take it out. People often mix them up.

Rich people know that it’s not just about increasing income but also about managing it well. You need to become financially literate to understand financial statements and manage assets. Many people earn good money but spend it all on liabilities and expensive wants. The result? They’re still broke.

Lesson Three: Work for Money vs. Money Works for You

The rich dad taught Robert and Mike that the way to wealth was through smart financial management, not just hard work. The crucial difference was in how money was used.

Most people work hard for money, making it their main goal. They think that if they work hard, they will eventually become rich. But hard work alone isn’t enough. You need to make money work for you.

Rich dad explained how they should invest wisely, not just in businesses but also in understanding financial principles. “Working for money is fine, but it’s not enough. Learn to make money work for you, and you will build real wealth.”

Lesson Four: How to Achieve Financial Independence

Robert’s rich dad showed them that financial independence isn’t just about having money; it’s about having the ability to manage it effectively. This means investing wisely and making sure that your assets are growing.

“Financial independence comes from understanding financial management and making informed decisions. Don’t just work for a paycheck; make sure that your money is growing through smart investments and management.”

Robert and Mike took these lessons to heart and began applying them. They started to look at money differently and focused on acquiring assets. Their experiences and the knowledge they gained from the rich dad set them on a path to financial independence and success.

Conclusions

Financial Literacy: Kiyosaki emphasizes the importance of understanding basic financial principles—how money works and how to manage it effectively.

Assets vs. Liabilities: The book teaches the difference between assets and liabilities, stressing that investing in income-generating assets is crucial for financial success.

Power of Investing: Kiyosaki highlights the importance of investing in real estate, stocks, and businesses to create passive income and grow wealth.

Entrepreneurial Mindset: Kiyosaki encourages developing entrepreneurial skills and thinking to build and grow successful businesses.

Risk and Education: The book explains the importance of taking calculated risks and investing in your own education to improve financial standing and make informed decisions.

Making Money Work for You: Kiyosaki teaches that successful people make money work for them, rather than working just for money.

Financial Independence: The core message of the book is to aim for financial independence through active financial management and investing.